When considering investing in a franchise it’s easy to get swept up in the excitement—the promise of running your own business, the security of a proven brand, and the appeal of joining a network that’s already established. But if you’re making a serious investment, you should also ask the harder question, according to Sarah Cressall, OBE, Founder, CEO of the Creation Station and award-winning entrepreneur
That question is ‘what happens if it doesn’t go to plan? – a question that was asked when Sarah Cressall’s own sister was buying a franchise.
‘What if’ that is the question of the day
The safest way to choose the right franchise for you is to explore the ‘What if?’ questions. This is both the ‘What if it goes wrong’… and also ‘What if it goes right’- but we can address the second half of this another time!
This involves looking at both the opportunities and the risks—so you can make decisions with complete confidence. And the good news about the franchise model, is it’s built to make sure that, even if you face challenges, you’re never facing them alone. Everyone within the franchise business has an invested interest to help you succeed.
Your business is much less likely to go wrong if you’ve invested in an established franchise brand that aligns with you and your working ethics and values.
But it’s still worth asking the question so you have the full picture
Why franchises have a lower failure rate
If you were starting a business entirely on your own, you’d still need to ask yourself the tough question: “What if it doesn’t work out?” It’s a sensible question for any major life or career change.
Here’s the reassuring news. According to the British Franchise Association and NatWest, around90% of UK franchisees have reported profitability every year for more than two decades. That’s not a short-term trend—it’s a consistent track record that demonstrates just how much stronger your chances can be when you join a well-run franchise.
Independent start-ups can be exciting, but they also carry far greater risk. Without the power of brand recognition, tried-and-tested systems, and an experienced support network, you’re building everything from scratch—often relying on trial and error. In contrast, franchising gives you a proven blueprint for success, along with the training, tools, and ongoing guidance to help you navigate challenges and grow with confidence.
When you run your own Franchise you benefit from:
- Established brand power that makes attracting customers easier
- Tested business systems that are refined over years, not months
- Ongoing training and support to help navigate challenges
- Collective buying power for marketing and supplies
In short, you get all the independence of running your own business, but with the safety net of an organisation that takes your success as seriously as you do.
When things change: common reasons a franchise might struggle
Even with that high success rate, no business is immune to change. Here are some of the main reasons a franchise unit might underperform—and how being part of a franchise can turn potential setbacks into opportunities.
Shifts in market demand
Customer needs can evolve, and what was once in high demand may start to decline. The difference with franchising? You’re not left to figure it out alone.
Example: During Covid lockdowns, many children’s activity businesses faced an overnight collapse in face-to-face sessions. Independent operators had to scramble. But in strong franchise networks, classes moved online within weeks—complete with training, marketing materials, and technology support.
Gradual industry changes
Not all change is dramatic. Smaller shifts—new competitors, new tech, or changes in customer habits—happen constantly. Good franchisors invest in ongoing research and development, ensuring the brand stays ahead of the curve so you don’t get left behind.
Personal circumstances
Life can throw curveballs—health challenges, relocation, or family needs. Most franchise agreements run for a set period, but there are often options if your circumstances change:
- Possibility of relocating your franchise
- Selling your business with the franchisor’s help
- Transferring ownership to another approved operator
- Early termination (with specific conditions in your contract)
As part of your due diligence, always ask: “If my circumstances change, what options do I have?”
Underperformance in your territory
You might find that while others in the network are thriving, your own location isn’t growing at the pace you’d hoped. This is where being part of a franchise can really come into its own. Your support team is on hand with targeted help, whether that’s marketing advice, operational tweaks, or extra business mentoring and practical support.
It is also important to set realistic milestones. The first six months are a learning curve—expect to build gradually, not instantly. The support network is there to get you on track, but consistent effort and following the system are key.
Your due diligence checklist
If you’re serious about buying into a franchise, don’t just ask about the success stories—dig into how they handle challenges:
- Talk to existing and former franchisees to get the full picture
- Ask for examples of how the franchisor has supported struggling locations
- Review the exit process—understand exactly what happens if you sell or leave early
- Check training and support systems—are they proactive, or only reactive when there’s a problem?
Why the network makes all the difference
When you go it alone, every obstacle is yours to solve. But in a franchise, you’re backed by an entire organisation invested in your success—marketing teams, operations experts, research and development, and a community of fellow franchise partners who’ve been where you are.
That’s why the statistics speak for themselves: the lower failure rate isn’t an accident—it’s the result of a business model built for resilience, adaptability, and shared expertise.
Final thought
Knowing what happens if things don’t go to plan isn’t negative—it’s smart. It’s what separates cautious guesswork from confident decision-making. When you join a strong franchise, you’re not just buying a business—you’re joining a partnership. And in that partnership, your success is as important to them as it is to you.
